Refund Contracts - Available For Purchase

---

Refundable Deposit Contracts, also known as Refund Contracts, represent direct payment obligations of the largest Water Companies operating in California. These Refundable Deposit Contracts are established when real estate developers initiate projects that necessitate the extension of water mains and associated water infrastructure. The real estate developer pays the Water Company the full cost to extend water services to their project, and this payment is classified as a Refundable Deposit. Subsequently, the Water Company constructs the new water system to serve the developer's project and retains ownership of this system. Over time, the Water Company reimburses the developer's costs through annual payments stipulated in the Refund Contract. Real estate developers often sell their Refund Contracts, as they typically do not engage in the long-term ownership of these agreements. By selling the Refund Contracts, they can reinvest the proceeds into new projects for better profitability. Apex Income Fund purchases these Refund Contracts at a price that yields a 9.0% return, with the income generated from the Refund Contracts being passed through and paid to investors as payments on their Investment Notes.